Cygnus Freezes Salaries

Sure, announce your company has been foreclosed while your employees are on vacation. Then, just to make them feel better, announce a salary freeze the day they return. This after treating your employees like crap for 3 years running. This is truly the management team from Hell! Why would anyone work for these inept people?

You ask "why would anyone work for these inept people?" I ask, "why would anyone who is not inept hang around for three years of abuse?" There's no Satan here, sounds like just a bunch of sheep who can't find a job anywhere else, but they're comfortable making a lot of noise about their employer under cover of "anonymous".

Because local management treats them very well. Lots of employees have flexible schedules and work form home and come and go as they please, because local management knows that they're not getting anything else. Look, the people who are left at Cygnus are dedicated to the industries that they cover - they haven't left because they feel a responsibility to their readership. And, they have it pretty good, so they're not going anyplace. Maybe salaries are frozen and maybe top management sucks, but the little people are trucking along and aren't really being affected. It's not a bad set-up. Sure, you don't know when your mag will be sold or fold, but you've got a decent gig til then, so why cut off your nose to spite your face?

Half of us werent even told...sad when your source of info is Folio and not from the company that you work for

Obviously the small band of Cygnus bashers who populate this web site haven't been in the industry very long, nor have they experienced what a real management team from hell is like. Many of us have worked for companies in the past who wouldn't break a sweat worrying about keeping the bulk of its workforce intact. Please close your yaps long enough to see the bodies of your shell-shocked comrades strewn along the roadside as these other "enlightened" managed companies hand out the pink slips. Get a grip on reality you bunch of ill-informed whiners! Our industry is going through a devastating economic period and a tremendous evolutionary phase that dictates a complete change in the way we deliver our product. Have I seen some mis-management here over the last decade -- certainly. What media company hasn't!!! But Cygnus has certainly retooled its infrastructure to meet the demands of a changing market and made investments in bringing interactive media to the front of the line -- I can't say our competitors have followed. So wake up and smell the humus. It ain't your daddy's magazine industry anymore, so either help in the transition or get a job at a newspaper!!! Or better yet, just shut the hell up and grab your blue apron and smile as you direct customers to the pet food because your total lack of understanding where the publishing is now and how dynamics have changed here at Cygnus and elsewhere negate your input. AND YES, I AM THRILLED TO HAVE A JOB AT 2008 WAGES!

Not all of us still working at Cygnus are "sheep". As stated above, some of us actually enjoy our jobs, have friends here, and appreciate the flexibility we have in our positions. Those of you who have chosen to leave Cygnus get on with your lives and leave us 'little people' alone. We need to support our families also in a downsizing job market.

Those of you that have made anonymous comments about this company maybe should leave. If your not happy here why are you still here running your mouth? If they choose to freeze salaries it isnt a bad thing. At least we still have a job. Better then being laid off. I am sure everyone was told about the salary freeze like our department was. Some people arent happy unless they are complaining about the company they work for. Those people need to move on to other ventures. I will continue to work for this company until they choose to let me go. Until then I will not make any bad comments about them. They have been very good to me. So those of you that arent happy the door is thataway>>>>>

Flex schedules and work from home are for the select favorites (and long long time staffers from pre Cygnus days who have plenty of perks) or those that work from the boonies/and in different states. You say they have to work 37 hours now? When I was there the work hours were officially 9 to 5:30 with a half hour for lunch, meaning we put in a full 40 hours a week - no free lunch.

My sentiments exactly! Whiners whine, cut and run and have zero to offer any one.

The Cygnus drama never ceases to intrigue me. In basically the same time frame that this and the prior Cygnus story appear and instantly pile up comment after comment, a story about McGraw-Hill is up indicating they cut 375 jobs in Q4 last year with nary a comment following.

...."Cygnus bashers who populate this web site haven't been in the industry very long, nor have they experienced what a real management team from hell is like".... Amen!!! I'm a rather small cog in the Cygnus scheme of things, but I'm one of those who HAS been in the business long enough to have worked for "management from hell" regimes. Monsters, head cases, and nincompoops of the first order. And, by absolutely no means have I been in agreement with all of the moves and decisions that have been during my time at Cygnus. Mistakes and bad choices have been surely made and extensively documented. But on balance, I've been taken pretty well treated during my years at the company. On top of that, more often than not, I've been surrounded by quality hard-working people dedicated to putting out quality products. How easy it must be for those on the outside to criticize when they haven't been charged with the tough tasks...and tough decisions...that go with having to navigate some of the hard financial and business realities that the company has been forced to deal with. And yes, count me among those who'd rather see my paycheck frozen as opposed to eliminated!

I am also a happy employee, basically. I'm also VERY grateful to have my pacheck frozen as opposed to eliminated! *BUT*.. why do department supervisors/managers always single certain people under them to lay blame, but yet, "Teacher's Pets" ALWAY get away with anything they do...they can do no wrong?! and having flexibility to go to the "top" to complain...ha! As IF... you get called on the carpet for not going thru proper channels... CLICK...that's what! We all put our pants on the same way... noses are up so far in the air that if it rained, they'd drown! We can't get justice IN office, I know there's no justice here...just a way to vent. Are we going to be laid off?

yes.

I am sure if there is going to be a lay off they will inform us. Cygnus is not the kind of publishing company that will not keep their employees informed. I have heard alot of scuttlebutt about the fact they dont have to tell you nothing. But what I have notice is they are good at keeping us informed. There was a story sometime back on Folio about the people who were interested in buying Cygnus and they said they can choose not to tell their employees and just lay you off. Well Cygnus is NOT like that. For now we still have a job. A salary freeze is fine by me. CYGNUS PROUD THROUGH AND THROUGH. I will back up the company I work for.

For those of you complaining about a salary freeze or salary cuts, it's time for a reality check. A salary freeze is the least of your worries. GE Capital is the equivalent of an investment bank, not a publishing house. They will not keep Cygnus but will sell it off piecemeal, if need be, to get as much of their money back as they can. By the end of the year, Cygnus as a single company probably will be gone. They may close the office in Melville and sell off the property in Wisconsin. Some people will lose their jobs and others may have to move to another part of the country to keep their jobs, depending on who buys the magazines they work for. Less profitable magazines may be shut down. It doesn't matter how long you have been there or how good you are. The people with the money make all the rules; they win, you lose. Welcome to the New World Order.

What the future holds for Cygnus or any other media company is not readily apparent to anyone. No one saw this economic meltdown that we’re experiencing coming and everyone has a different opinion of when and how it will end. All we can do is to move forward and try to achieve the best results that we can. Cygnus is a leading company made up of some the industry’s most talented professionals. It doesn’t have to take a back seat to any other company and it won’t. It is a leader in the industry and its better off than most of its competitors. Cygnus is much more valuable as an entity made up of several dozen magazines, websites and trade shows than individual pieces. It wouldn’t be logical for any owner to sell-off properties at a multiple much less than what they would get for the whole company. Cygnus is solid.

You don't understand the economics. Banks want their money now, for their ugly balance sheets. Banks hope companies DON'T make their convenances. Why. Cause the banks want their $120 million NOW, not a measly $9 million. That's why GE Capital will do exactly what "Foreclosure Sale" says it will do. It will sell to the highest bidder. Because Cygnus has been unable to sell itself as a single unit, GE Capital will break it up and sell piecemeal, to the highest bidders, of course. Happens every recession, and this downturn is a doozy.

Adam Smith is rolling over in his grave. Why would a company destroy an asset that’s got strong cash flow and is profitable? Past stories in Folio show that the common multiple for sales is two-times EBITA for single properties versus six- to seven-times EBITA for platform companies like Cygnus. The idea that a bank would take a loss of more than 70% to divest itself of a performing asset is absurd.

It's sad to read these posts; I've been there, done that, over the years. Having been hired, fired, downsized and been the one doing the downsizing, I know there are always shades of gray in everything. The rumor mill is addictive and fun, but it's not constructive. Above all else, people at Cygnus have to assess their publications/properties, and decide how likely it is that they'll keep their jobs when the pieces are sold off this year, as they surely will be. Maybe it's not fair, but again, the world's not fair, and it's just not productive to go there. I've dodged most bullets over the years, but always assumed I was going to get the next one between the eyes. When I did (ouch!), I already had a Plan B, and always landed quickly. Those of you on the outside, please don't dump on the Cygnus folk who remain. My bet is that most of them are talented people who are, like most of us, resistant to change. They have friends in the industry and in the office, pride in their work and an investment in what they've built and done. Besides, the devil you know is always better than the one you don't. I can't find anything to criticize in them. But they should realize there's no time to waste on recriminations, speculation about the next move or anything else. Change is inevitable. Like it or not, it's urgent that they dust off the resume and start developing a Plan B, which may require thinking outside the box. Good luck, everybody. Be proud, and keep your powder dry.

ABRY lopped off the 401k match at F&W Media without a second thought... that was after the re-organizing into "communities" read that as easier blocks to sell... Yes publishing companies will get sold, one piece at a time, so investors can get their money. It matters not if you have worked there for years, set down roots in the area or simply like what you do... when an offer comes, you will be sold. So get used to the idea of working for reduced wages with a skeleton staff until you are folded or sold. Then try to find something new. Glad I'm not 50 years old.

Do you REALLY think Cygnus will end up closing? or will they just lay off some? I can't imagine life without Cygnus...I love it there! I've been there 12 years in Aug. 2009.. I'm worried... I'm 51 years old... and with the job market in the area as bad as it is...who on earth will hire us? I'm not an editor, publisher/management...just a hard worker that loves what I do. Would we get unemployment? how soon do you think all this might take place, as I know the $120 is due in July??? I'm scared for my family and I, as I'm a single parent and support my family on MY income.

I'm with "enough already" ... this is the first time I've commented on one of these blogs (I generally read them for amusement purposes.) Truth is we don't have to agree with everything going on or be happy about it - but we choose to stay and be loyal to those around us - our fellow associates and friends, the properties we work on and our advertisers who count on us. I don't stick around for ABRY or an interim CEO, I stick around for me. Will I be looking for a job by the end of the year ... maybe, but why is that different than looking for one now or being one of thousands from local manufacturing facilities who've face the recent layoffs? What I want to know is those of you out there who continue to hammer the foreclosure or bankruptcy thing ... how many times is piecemeal mentioned? Seriously - how do you know this (I mean really - do you work for GE Capital) and why do you care? If you've already left Cygnus don't you have work to do? And if you're still here and being this way - ba bye ... move on! In the meantime, can we wear jeans more often?

Exactly when did flex hours and work-at-home arrangements become acceptable substitutes for fair pay and respectful treatment?

Who are we? We are the scores of current and former employees who have been abused, lied to, manipulated, overworked, underpayed, unappreciated, exploited, generally screwed over and, in some cases, had our careers ended by this company (and/or others like it). If you are still there, it is because you are one of the lucky few who have been treated fairly or, more likely, because you can't find another job or are one of the executives responsible for the current situation. You are saying "enough already" to the wrong people. You should have said it to management, and you should have said it years ago. Now it it is too late. What is happening was made inevitable when ABRY/Mackler bought Cygnus for far more than it was really worth or ever would be worth. That was the beginning of the end for this company.

So you are abused, lied to, manipulated, overworked etc etc. but you could be a current employee and I'm the one who "more likely can't find another job"? hmm... If your career was ended by this company I'm sure there is a lot more to the story ... a deceitful departure perhaps or were you just not very good at what you do. Can I find another job? I can't say that's the reason I'm still here, I haven't tried. I do think I'm good at what I do and I have a college degree so while I know the job market isn't the greatest, I'm thinking I could find something to do. I do live locally and appreciate the convenience and flexibility - so maybe my thought process is a little less jaded?! Sorry for you - Good Luck!

FYI: I was in my job there for eight years--no problems until an inept, inexperienced publisher took over. There was no deceit on my part, but, oh yes, there was deceit. If anything, I was too honest. My predecessor lasted 3 months, my successor, a former Newsday editor, lasted 6 months--then they eliminated the job altogether. That was just as well since by that time the magazine was about 40 percent smaller. I'm now self-employed because being over 50 that's the only opportunity there is--but it's better than working for arrogant, dishonest fools. And good luck to you, because if you think you are just going to walk into another job when this one disappears you are kidding yourself.

Why does Cygnus Business Media even HAVE to end?! Why can't it just straighten itself out and let us continue working? Is there no hope?! I want to retire from Cygnus...that's at least 12 years yet.

The problem is that Cygnus is probably mortgaged for more than its salable value in the current economy. That's why ABRY is turning it over to its creditor, GE Capital. If GE Capital can sell it intact for enough money to cover the debt, they probably will, but it may be difficult to find a buyer at that price. If that's the case, they may sell off individual magazines and other properties to different buyers to recover as much of the debt as they can. Once you have a new owner, anything can happen.

I just so the Electrical book for Cygnus and the industrial books both could not get any smaller it is evident they are both losing money so why do they keep them up and running. that could be the reason they are being repoed.Cygnus is more concerned with its image than hiring hard working good sales people.

Footnote: According to Leveragedfinancenews.com, Cygnus failed to repay $24 million of loans that matured on Jan. 13. According to Bloomberg.com, on Feb. 10 another ABRY-owned property, Muzak Holdings LLC with reported debts of $465.3 million and assets of $324.2 million, filed for Chapter 11 bankruptcy protection.